$50 Million Rbi Purchases Halt Rupee March, Closes At 36.19

The rupees upward march was contained yesterday after the Reserve Bank of India (RBI) stepped into the market after four days. Forex dealers estimated that the RBI bought between $30 million and $50 million in two tranches to bring down the rupee from an intra-day high of 36.17-18 to 36.22-23. However, the rupee later recovered to close at 36.19-20 a dollar.

After opening at 36.18-20, the rupee quickly climbed to 36.17-19. The RBI entered the market at around 11. 00 a m and then at 12.30 p m and managed to bring down the rupee to 36.22-23. Most banks were short of dollars when the RBI hit, sending them hunting for cover.

 

However, the rupee recovered steadily after the RBI left the market to hover around the close level of 36.19.5-20 from 1.30 p m onward.

Trading volumes remained low and the nominal activity that dealers reported was mainly in the inter-bank segment. With volumes remaining low, even nominal purchases are affecting the rates.

Trade in the forward segment was dull as the month-end demand observed over the last few days eased. The six-month annualised closed at 5.97 per cent and the one-year at 6.02 per cent compared with closes of 5.97 per cent and 6.04 per cent respectively on Thursday.